$2$a$)$ Some $7\mathrm{.}7$ percent semiannual coupon bonds are selling for $93\mathrm{.}52.$ The bonds have a face value of $$1,000$ and

mature in $10$ years. What is the expected annual percentage price growth $($capital gain yield$)?$ HINT: find the

YTM first and remember that YTM can be expressed as the sum of two components.

$2$b$)$ A company wants to issue new $15-$year, $$1,000$ face value bonds at par. The company currently has $4\mathrm{.}80$

percent coupon bonds on the market that sell for $$979\mathrm{.}00,$ make semiannual interest payments, and mature in

$15$ years. What coupon rate should the company set on its new bonds? HINT: this is just another way of asking

for the YTM of the current bonds with the same maturity date.